Exam 1: An Overview of Managerial Finance

A proprietorship is an unincorporated business owned by one individual and the owner benefits from the limited liability for business, which limits personal losses to what the proprietor has invested in the company. 

Because financial institutions in other countries are generally less regulated than those in the United States, they generally _____. 

Which of the following should be the primary goal pursued by the financial manager of a firm?

Which of the following statements is true?

Which of the following statements concerning a firm's quest to maximize wealth is correct?

No firm can take cost-increasing, socially responsible actions in a competitive marketplace and expect to continue to effectively compete, even if those cost-increasing actions yield significant benefits to the firm. 

The 11 sections (titles) in the Sarbanes-Oxley Act of 2002 _____. 

All else equal, in which of the following forms of business would the possibility of an agency problem be the greatest?

Identify a true statement about a limited liability company (LLC). 

Which of the following functions deals with the management of money?

Which of the following is a reason for a company to go international?

The success of financial institutions requires an understanding of _____. 

The finance function is relatively independent of most other corporate functions. Marketing decisions, for example, might affect the firm's need for funds but are not affected by conditions in financial markets or other financing issues. 

To properly maximize the value of the firm, the financial manager should execute his or her duties independent of the cash flow decisions made by other senior managers. 

Which of the following statements is correct?

Which of the following represents a difference between an S corporation and a limited liability company (LLC)?

Which of the following is true of corporations that operate in several different countries?

Which of the following is true of financial services provided by persons working in banks, insurance companies, and brokerage firms?

Two key limitations of the proprietorship form of business involve potential difficulty in raising the necessary capital and the presence of unlimited personal liability for business debts. 

Which of the following actions is consistent with social responsibility and is not necessarily inconsistent with stockholder wealth maximization?